March 14 (Reuters) – Pfizer Inc (PFE.N) agreed to extend its COVID-19 vaccine contract from 2023 to 2026 with the European Union, the Financial Times reported on Tuesday, citing people with knowledge of the matter.

The drugmaker has offered to cut the number of doses being supplied by 40% and delay delivery of the shots, the report added.

Reuters reported in January about the talks between Brussels and Pfizer and German partner BioNTech amid a global glut of COVID-19 shots, in which Europe is contending with a particularly big excess.

The discussions included the possibility that Pfizer will reduce the up to 500 million COVID-19 vaccine doses the EU has committed to buy this year in return for a higher price.

Under the revised terms, Pfizer is asking for payment for doses ordered, that will never be manufactured, the FT report said, adding that the new terms were presented to health ministers of member states in a private meeting.

Reporting by Bhanvi Satija and Pratik Jain in Bengaluru; Editing by Maju Samuel

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